Keith Flenniken is the owner of Flenniken Enterprises, a real estate investment firm with an extensive portfolio of residential and commercial properties in New Hampshire. He recognizes that there are a few best practices individuals who are interested in getting into real estate investing should follow before taking the leap.
Prospective real estate investors should begin by compiling as much information and advice as possible for their target markets. Property ads and listings can provide a considerable data on the types of properties available in the market and the prices their owners are looking for. In time, investors will begin to be able to identify good deals and bad deals by taking note of discrepancies in property price and quality.
Jumping in too soon could cause investors to eat up all of their investment cash and reserve funds. There are a number of books and websites investors can turn to for help making the right decision. Investors who arm themselves with knowledge early on will reduce the possibility of making critical errors. Additionally, a strong support system made of mentors, attorneys, and/or accountants will also help investors adjust to their specific market.
Hiring a realtor or real estate agent is a good way to obtain guidance during the process, but only if this individual is someone the investor can trust. This individual should be willing to share market knowledge and put the investor’s interests above all else. A good agent will even be able to help negotiate prices so that investors are better positioned to turn new properties into money-making assets.
Finally, all investors must be sure to set a budget early on in the process. An understanding of what an investor can afford to invest, as well as how much he or she will be able to secure in a loan from the bank, will keep them from buying more than they can afford.